MIRA INFORM REPORT

Report Date :

13.09.2013

IDENTIFICATION DETAILS

Name :	BALLARPUR INDUSTRIES LIMITED
Registered Office :	P.O. Ballarpur Paper Mills, Chandrapur Ballarpur – 442901, Maharashtra
Country :	India
Financials (as on) :	30.06.2012
Date of Incorporation :	26.04.1945
Com. Reg. No.:	11-010337
Capital Investment / Paid-up Capital :	Rs. 1311.200 Millions
CIN No.: [Company Identification No.]	L21010MH1945PLC010337
TAN No.: [Tax Deduction & Collection Account No.]	NGPB00166F / NGPB01717C
PAN No.: [Permanent Account No.]	AAACB5343E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Writing and Printing Paper and Paper Products.
No. of Employees :	2213 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 63480000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a fine track record. There appears a drastic dip in the net profitability during 2012. However, financial position of the company appears to be sound. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY [GENERAL DETAILS]

Name :	Mr. Anil Mohan
Designation :	Accounts Department
Contact No.:	91-124-2804242
Date :	11.09.2013

LOCATIONS

Registered Office/ Factory :	P.O. Ballarpur Paper Mills, Chandrapur Ballarpur – 442901, Maharashtra, India
Tel. No.:	91-124-2804242/ 43
Fax No.:	91-124-2804260/ 61
E-Mail :	akhil.mahajan@bilt.com sectdiv@bilt.com
Website :	http://www.bilt.com
Location :	Owned
Head Office :	Thapar House, 124 Janpath, New Delhi – 110001, India
Corporate/ Operating Office :	First India Place, Tower C, Mehrauli - Gurgaon Road, Gurgaon - 122002, Haryana, India
Tel. No.:	91-124-2804242/ 43
Fax No.:	91-124-2804260-61
E-Mail :	corpcom@bilt.com
Plant 1 :	Unit Sewa Gaganpur, P.O. Jeypore Railway Station, District Koraput - 764002, Orissa, India
Plant 2 :	Unit Shree Gopal P.O. Yamunanagar, District Yamunanagar - 135001, Haryana, India
Plant 3 :	Unit Ashti P.O. Ashti - 442 707, Tehsil Chamorshi, District Gadchiroli, Maharashtra, India

DIRECTORS

AS ON 30.06.2012

Name :	Mr. Gautam Thapar
Designation :	Chairman
Name :	Mr. R.R. Vederah
Designation :	Manager Director and Executive Vice Chairman
Name :	Mr. B. Hariharan
Designation :	Group Director (Finance)
Experience :	29 years
Name :	Mr. A.P. Singh
Designation :	Director - Nominee of LIC
Name :	Mr. P.V. Bhide
Designation :	Director
Date of Birth/Age :	62 years
Name :	Mr. Sanjay Labroo
Designation :	Director
Name :	Mr. A.S. Dulat
Designation :	Director
Name :	Mr. Ashish Guha
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Anil Mohan
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2013

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1211198	0.18
Bodies Corporate	322799469	49.24
Sub Total	324010667	49.43
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	324010667	49.43
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	47399724	7.23
Financial Institutions / Banks	211624	0.03
Central Government / State Government(s)	5550	0.00
Insurance Companies	65176669	9.94
Foreign Institutional Investors	117547517	17.93
Sub Total	230341084	35.14
(2) Non-Institutions
Bodies Corporate	29520994	4.50
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	44847534	6.84
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	14297583	2.18
Any Others (Specify)	12505854	1.91
Clearing Members	943163	0.14
Non Resident Indians	11224649	1.71
Trusts	338042	0.05
Sub Total	101171965	15.43
Total Public shareholding (B)	331513049	50.57
Total (A)+(B)	655523716	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	123	0.00
Sub Total	123	0.00
Total (A)+(B)+(C)	655523716	100.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a %
1	Blue Horizon Investments Limited	450	0.00
2	Gautam Thapar	1161216	0.18
3	Avantha Holdings Limited	322689019	49.23
4	B M Thapar	17911	0.00
5	Nandini Kapur	4800	0.00
6	Sulochana Thappar	27271	0.00
7	Avantha Realty Limited	110000	0.02
	Total	324010667	49.43

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

l. No.	Name of the Shareholder	No. of Shares held	Shares as %
1	Life Insurance Corporation of India	44134423	6.73
2	Samena Special Situations Mauritius	41515609	6.33
3	Platinum Investment Management Limited A/c Platinum Asia Fund	35282244	5.38
4	HDFC Trustee Company Limited - Various Fund	26301428	4.01
5	Birla Sun Life Insurance Company Limited	14046011	2.14
6	General Insurance Corporation of India	12801050	1.95
7	UTI Dividend Yield Fund	11189208	1.71
8	Citigroup Global Markets Mauritius Private Limited	9901876	1.51
	Total	195171849	29.77

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as %
1	Life Insurance Corporation of India	44134423	6.73
2	Samena Special Situations Mauritius	41515609	6.33
3	Platinum Investment Management Limited A/c Platinum Asia Fund	35282244	5.38
	Total	120932276	18.45

Details of Depository Receipts (DRs)

l. No.	Type of Outstanding DR (ADRs, GDRs, SDRs, etc.)	No. of Outstanding DRs	No. of Shares Underlying Outstanding DRs	Shares Underlying Outstanding DRs as %
1	GDR	41	123	0.00
	Total	41	123	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Writing and Printing Paper and Paper Products.

Products/ Services :

ITC Code No.	Product Descriptions
4810.000	Paper

Exports :

Products :

Finished Goods

Countries :

· Malaysia

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS (AS ON 30.06.2011)

Particulars	Unit	Installed Capacity	Actual Production
Paper including Wrapper and Coated Paper	M.T.	232,068	200,253

a) The installed capacity is as certified by the Mangement and license capacity is not given as licensing is not applicable.

b) Includes Production 8649 MT of Coated Paper at Unit Shree Gopal converted out of the paper manufactured by Company.

c) Includes Production NIL of Paper Stationary converted out of the paper manufactured by Company.

d) The Installed Capacity and Actual Production of paper and wrapper includes Specialised Grades of paper.

GENERAL INFORMATION

Customers :

Retailers and End Users

No. of Employees :

2213 (Approximately)

Bankers :

· Axis Bank Limited

· Export-Import Bank of India

Facilities :

Secured Loans	30.06.2012	30.06.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Non-convertible debentures	0.000	300.000
External commercial borrowings (ECB) from banks	556.100	906.700
Term loans from financial institutions	94.000	238.000
Total	650.100	1444.700

Banking Relations :	--
Financial Institutions :	· GE Money Financial Services Private Limited · Life Insurance Corporation of India
Auditors :
Name :	K.K. Mankeshwar and Company Chartered Accountants
Address :	Kingsway, Nagpur – 440001, Maharashtra, India
Subsidiary Companies :	· Ballarpur International Holdings B.V. · BILT Tree Tech Limited · Ballarpur Speciality Paper Holdings B.V. · Ballarpur Packaging Holdings B.V. · Ballarpur International Packaging Holdings B.V. (merged with Ballarpur Packaging Holdings w.e.f. 29.12.2011) · Premier Tissues (India) Limited · Bilt Paper Limited (voluntary dissolution w.e.f 21.02.2012)
Step down subsidiary :	· Ballarpur Paper Holdings B.V. · Sabah Forest Industries Sdn. Bhd. · BILT Graphic Paper Products Limited · Ballarpur International Graphic Paper Holdings B.V.
Companies over which person(s) having direct/ indirect control or significant influence over the company is able to exercise significant influence:	· APR Sacks Limited · Arizona Printers and Packers Private Limited · Avantha Holdings Limited · Avantha Power and Infrastructure Limited · Avantha Realty Limited · Avantha Technologies Limited · Bilt Industrial Packaging Company Limited · Biltech Building Flements Limited · Crompton Greaves Limited · Global Green Company Limited · Imerys NewQuest (India) Private Limited · Jhabua Power Limited · Korba West Power Company Limited · Krebs and Cie (India) Limited · Mirabelle Trading Pte. Limited · Salient Business Solutions Limited · SMI NewQuest India Private Limited · Solaris Chemtech Industries Limited · UHL Power Company Limited · Ultima Hygiene Products (Private) Limited

CAPITAL STRUCTURE

AS ON 30.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1487500000	Equity Shares	Rs. 2/- each	Rs. 2975.000 Millions
10250000	Preference Shares	Rs. 100/- each	Rs. 1025.000 Millions
	Total		Rs. 4000.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
1030005910	Equity Shares	Rs. 2/- each	Rs. 2060.000 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
655773584	Equity Shares	Rs. 2/- each	Rs. 1311.500 Millions
249745	Less: Forfeited shares -	Rs. 2/- each	Rs. 0.500 Million
655523839	Total Equity Shares	Rs. 2/- each	Rs. 1311.000 Millions
	Add: Amount originally paid up on forfeited shares		Rs. 0.200 Million
	Total		Rs. 1311.200 Millions

Reconciliation of number of Shares

Equity Shares:	30.06.2012
	No. of shares	Rs. in Millions
Balance as at the beginning of the year	655523839	1311.200
Add:- Issued during the Year	--	--
Balance as at the end of the year	655523839	1311.200

Rights, preferences and restrictions attached to shares:

The company has one class of equity shares having a par value of Rs. 2 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Details of shares held by shareholders holding more than 5% of the aggregate shares as on 30.06.2012 in the Company:

Name of shareholders	30.06.2012
	No. of shares	Holding ( % )
Avantha Holdings Limited	322689019	49.23
Life Insurance Corporation of India	44134423	6.73
Samena Special Situations Mauritius	41515609	6.33
Platinum Investment Management Limited A/c Platinum Asia Fund	35282244	5.38
HDFC Trustee Company Limited -HDFC Various Funds	33163287	5.06

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	30.06.2012	30.06.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1311.200	1311.200
(b) Reserves & Surplus	14559.600	14874.900
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	15870.800	16186.100
(3) Non-Current Liabilities
(a) long-term borrowings	2650.100	3944.700
(b) Deferred tax liabilities (Net)	1064.800	1048.700
(c) Other long term liabilities	117.400	146.800
(d) long-term provisions	294.000	295.300
Total Non-current Liabilities (3)	4126.300	5435.500
(4) Current Liabilities
(a) Short term borrowings	3357.300	4261.500
(b) Trade payables	1300.800	1634.000
(c) Other current liabilities	2355.300	2559.500
(d) Short-term provisions	438.800	514.100
Total Current Liabilities (4)	7452.200	8969.100
TOTAL	27449.300	30590.700
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	8931.300	9498.000
(ii) Intangible Assets	0.700	0.800
(iii) Capital work-in-progress	1415.900	1072.800
(iv) Intangible assets under development	329.900	294.200
(b) Non-current Investments	8138.900	11962.500
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	107.800	116.500
(e) Other Non-current assets	1.100	0.800
Total Non-Current Assets	18925.600	22945.600
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	2512.600	2694.000
(c) Trade receivables	2353.700	2412.900
(d) Cash and cash equivalents	146.300	124.100
(e) Short-term loans and advances	3501.100	2379.400
(f) Other current assets	10.000	34.700
Total Current Assets	8523.700	7645.100
TOTAL	27449.300	30590.700

SOURCES OF FUNDS		30.06.2010
SHAREHOLDERS FUNDS
1] Share Capital		1311.234
2] Share Application Money		0.000
3] Reserves & Surplus		15201.781
4] (Accumulated Losses)		0.000
NETWORTH		16513.015
LOAN FUNDS
1] Secured Loans		3864.525
2] Unsecured Loans		4756.292
TOTAL BORROWING		8620.817
DEFERRED TAX LIABILITIES		1008.713
TOTAL		26142.545
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9715.808
Construction and Installation-in-Progress including Expenditure thereon (Pending Allocation)		855.139
Advance against Capital Assets		29.613
INVESTMENT		11510.275
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1783.281
	Sundry Debtors	2218.652
	Cash & Bank Balances	821.917
	Other Current Assets	0.239
	Loans & Advances	4447.613
Total Current Assets		9271.702
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1426.042
	Other Current Liabilities	1199.288
	Provisions	2614.662
Total Current Liabilities		5239.992
Net Current Assets		4031.710
MISCELLANEOUS EXPENSES		0.000
TOTAL		26142.545

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2012	30.06.2011	30.06.2010
	SALES
		Revenue from operations	10943.500	10609.100	10205.779
		Other Income	51.000	40.800	63.195
		TOTAL (A)	10994.500	10649.900	10268.974
Less	EXPENSES
		Cost of materials consumed	4693.000	4924.900
		Purchases of stock-in-trade	883.800	782.600
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	38.700	(245.000)
		Employee benefits expense	723.900	765.700
		Other expenses	3370.800	2702.200
		TOTAL (B)	9710.200	8930.400	8337.970
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1284.300	1719.500	1931.004
Less	FINANCIAL EXPENSES (D)		264.000	374.700	223.226
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1020.300	1344.800	1707.778
Less/ Add	DEPRECIATION/ AMORTISATION (F)		898.300	840.400	833.743
	PROFIT BEFORE TAX (E-F) (G)		122.000	504.400	874.035
Less	TAX (H)		56.300	202.900	291.201
	PROFIT AFTER TAX (G-H) (I)		65.700	301.500	582.834
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2907.804	3150.904	3025.269
Add	DEBENTURE REDEMPTION RESERVE NO LONGER REQUIRED		75.000	75.000	75.000
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	50.000	150.000
		Debenture Redemption Reserve	168.800	112.500	0.000
		Proposed Dividend	381.000	457.100	382.199
	BALANCE CARRIED TO THE B/S		2488.704	2907.804	3150.904
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	189.300	266.100	204.988
		Interest on loan	0.000	0.000	53.602
		Other Earnings	0.000	0.000	6.621
	TOTAL EARNINGS		189.300	266.100	265.211
	IMPORTS
		Raw Materials	1138.400	2024.300	900.043
		Components and spare parts	200.100	249.300	127.502
		Others	0.000	0.000	50.288
	TOTAL IMPORTS		1338.500	2273.600	1077.833
	Earnings Per Share (Rs.)
	Basic		0.10	0.46	1.02
	Diluted		0.10	0.46	0.92

QUARTERLY RESULTS

PARTICULARS	30.09.2012	31.12.2012	31.03.2013	30.06.2013
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	2550.900	2242.000	2690.300	2400.100
Total Expenditure	2109.200	1836.200	2289.500	2036.800
PBIDT (Excl OI)	441.700	405.800	400.800	363.300
Other Income	0.000	0.000	0.000	0.000
Operating Profit	441.700	405.800	400.800	363.300
Interest	82.800	100.500	120.100	123.000
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	358.900	305.300	280.700	240.300
Depreciation	204.500	205.500	200.200	198.700
Profit Before Tax	154.400	99.800	80.500	41.600
Tax	8.900	32.500	26.200	(22.600)
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	145.500	67.300	54.300	64.200
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	145.500	67.300	54.300	64.200

KEY RATIOS

PARTICULARS		30.06.2012	30.06.2011	30.06.2010
PAT / Total Income	(%)	0.60	2.83	5.68
Net Profit Margin (PBT/Sales)	(%)	1.11	4.75	8.56
Return on Total Assets (PBT/Total Assets}	(%)	0.69	2.92	4.60
Return on Investment (ROI) (PBT/Networth)		0.01	0.03	0.05
Debt Equity Ratio (Total Debt/Networth)		0.38	0.51	0.52
Current Ratio (Current Asset/Current Liability)		1.14	0.85	1.77

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT

Particulars	30.06.2012	30.06.2011	30.06.2010
	(Rs. In Millions)
Current maturities of long-term debts	1500.100	1622.700	NA

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

CHARGES

ENTITY	PERSON	COMPETENT AUTHORITY	REGULATORY CHARGES	REGULATORY ACTION(S) / DATE OF ORDER	FURTHER DEVELOPMENTS
BALLARPUR INDUSTRIES LIMITED	--	EPFO	EXEMPTED AND UNEXEMPTED ESTABLISHMENTS DEFAULTED WITH EPFO INCLUDING PROVIDENT FUND, PENSION AND EDLI CONTRIBUTION, ADMINISTRATION CHARGES AND PENAL DAMAGES OF RS.2.149 MILLIONS	AMONG OTHER ACTIONS, NAMES OF DEFAULTERS PUT ON THE EPFO WEBSITE 31-MAR-2012	--

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10394873	31/12/2012	500,000,000.00	GE MONEY FINANCIAL SERVICES PRIVATE LIMITED	401 402 4TH FLOOR AGGARWAL MILLENIUM TOWER, E 123 NETAJI SUBHASH PLACE, PITAMPURA DELHI - 110034, INDIA	B65128324
2	10382978	23/10/2012	1,500,000,000.00	EXPORT-IMPORT BANK OF INDIA	`CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B60688421
3	10062822	15/10/2007 *	820,000,000.00	HSBC BANK (MAURITIUS) LIMITED	5TH FLOOR, LES CASCADES BUILDING, EDITH CAVELL STREET, PORT LOUIS, PORT LOUIS 000000, MAURITIUS	A25818626
4	90235087	18/10/2012 *	220,000,000.00	LIFE INSURANCE CORPORATION OF INDIA	INVESTMENT DEPARTMENT,6TH FLOOR, CENTRAL OFFICE, 'YOGAKSHEMA' JEEVAN BEEMA MARG, MUMBAI - 400021, MAHARASHTRA, INDIA	B62461249
5	80049461	28/09/2004	500,000,000.00	UTI BANK LIMITED	148BARAKHAMBHA ROAD, NEW DELHI - 110001, INDIA	-
6	90241162	16/11/2012 *	650,000,000.00	AXIS BANK LIMITED	2ND FLOOR, AXIS HOUSE, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA	B62728514
7	90235022	16/02/2004	95,000,000.00	IDBI BANK LIMITED	1109 AND 1110, SURYA KIRAN BUILDING, 19, K.G. MARG, NEW DELHI, INDIA	-
8	90235007	24/12/2003	250,000,000.00	IDBI BANK LIMITED	1109 AND 1110, SURYA KIRAN BUILDING, 19, K.G. MARG, NEW DELHI, INDIA	-
9	90058140	03/06/2003	250,000,000.00	ING VYASA BANK LIMITED	G-35, CONNAUGHT PLACE, NEW DELHI, DELHI, INDIA	-
10	80039269	16/11/2012 *	500,000,000.00	AXIS BANK LIMITED	2ND FLOOR, AXIS HOUSE, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA	B62739420
11	90234925	27/02/2003	5,000,000.00	EXPORT- IMPORT BANK OF INDIA	CENTRE ONE BUILDING; FLOOR 21, W.T.C. COMPLEX; CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	-
12	90238029	30/11/2002 *	500,000,000.00	UTI BANK LIMITED	13TH FLOOR; MAKER TOWER F, CUFFE PARADE, COLABA, MUMBAI - 400005, MAHARASHTRA, INDIA	-
13	90240959	30/11/2003 *	500,000,000.00	UTI BANK LIMITED	13TH FLOOR; MAKER TOWER F, CUFFE PARADE, COLABA, MUMBAI - 400005, MAHARASHTRA, INDIA	-
14	90234871	12/07/2002	31,500,000.00	PUNJAB NATIONAL BANK	ECE HOUSE, K.G. MARG, NEW DELHI - 110001, INDIA	-
15	90238012	09/03/2004 *	1,400,000,000.00	UTI BANK LIMITED	13TH FLOOR; MAKER TOWER F, CUFFE PARADE, COLABA, MUMBAI - 400005, MAHARASHTRA, INDIA	-
16	90238178	06/05/2002 *	1,400,000,000.00	UTI BANK LIMITED	13TH FLOOR; MAKER TOWER F, CUFFE PARADE, COLABA, MUMBAI - 400005, MAHARASHTRA, INDIA	-
17	90240875	09/03/2004 *	1,400,000,000.00	UTI BANK LIMITED	13TH FLOOR; MAKER TOWER F, CUFFE PARADE, COLABA, MUMBAI - 400005, MAHARASHTRA, INDIA	-
18	90234847	12/03/2003 *	500,000.00	STATE BANK OF PATIYALA	CENTRAL AVENUE BRANCH, NAGPUR - 440018, MAHARASHTRA, INDIA	-
19	90043264	05/06/2002 *	525,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, WTC COMPLEX; CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	-
20	90043252	03/12/2001	300,000,000.00	UTI BANK LIMITED	STATESMAN HOUSE, BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA	-
21	90236129	21/04/2003 *	250,000,000.00	THE HONKONG AND SHANGHAI BANKING CORPORATION LIMITED	NEW DELHI, INDIA	-
22	90240831	21/04/2003 *	250,000,000.00	THE HONGKONG AND SHANGHAI BANKING COPRORATION LIMITED	NEW DELHI, INDIA	-
23	90043233	07/11/2001	120,000,000.00	UTI BANK LIMITED	STATESMAN HOUSE; UPPER GROUND FLOOR, 48, BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA	-
24	90043172	20/08/2001	800,000,000.00	ICICI LIMITED	ICICI TOWER, NBCC PLACE, PRAGATI VIHAR; BHISHAM PITAMAH MARG, NEW DELHI - 110003, INDIA	-
25	90043107	18/12/2001 *	500,000,000.00	UTI BANK LIMITED	STATESMAN HOUSE, 148; BARAKHAMBA ROAD, NEW DELHI, INDIA	-
26	90057488	05/06/2001	300,000,000.00	ICITI LIMITED	NBCC PLACE, BHISHAM PITAMAH MARG, NEW DELHI - 110003, INDIA	-
27	90238175	30/03/2001	450,500,000.00	ALLAHABAD BANK	2 NATAJI SUBHAS ROAD, CALCUTTA, WEST BENGAL, INDIA	-
28	90232579	29/03/2001 *	130,000,000.00	INTERNATIONAL FINANCE CORPORATION	2121; PENNSYLVANIA N. W., WASHINGTON D. C.; 20433, UNITED STATES OF AMERICA	-
29	90056939	28/09/1998	250,000,000.00	ABN AMRO BANK N.V.	327, M.G. ROAD, PUNE - 411001, MAHARASHTRA, INDIA	-
30	90042257	18/12/2002 *	510,000,000.00	IDBI BANK LIMITED	IDBI HOUSE; FERGUSSON COLLEGE ROAD, DNYANESHWAR PADUKA CHOWK, SHIVAJI NAGAR, SHIVAJI NAGAR - 400005, MAHARASHTRA, INDIA	-
31	80050629	06/01/1998	40,000,000.00	THE REPATRIATES CO-OPERATIVE FINANCE AND DEVELOPMENT BANK LIMITED	33, NORTH USMAN ROAD,, T.NAGAR, CHENNAI - 600017, TAMILNADU, INDIA	-
32	90041779	08/10/1996	170,000,000.00	BANK INTERNASIONAL INDONESIA	RAHEJA CHAMBERS, 213; NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	-
33	90240253	23/07/1996 *	500,000,000.00	ICICI LIMITED	163; BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
34	90240221	24/01/1989 *	6,500,000.00	ORIENTAL BANK OF COMMERCE	E" BLOCK, CONNAUGHT CIRCUS, NEW DELHI - 110001, MAHARASHTRA, INDIA	-
35	90041674	16/04/1996	2,790,975.00	ABN-AMRO BANK	STOCKOLM BRANCH, P.O.B.NO.7826; STOCKHOLM, STOCKHOLM, MAHARASHTRA, INDIA	-
36	90041666	25/08/1997 *	2,100,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	-
37	90041617	06/09/1996 *	250,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE, WORLD TRADE CENTRE; CUFFE PARADE, BOMBAY - 400005, MAHARASHTRA, INDIA	-
38	90041585	06/09/1996 *	1,100,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE, WORLD TRADE CENTRE; CUFFE PARADE, BOMBAY - 400005, MAHARASHTRA, INDIA	-
39	90234057	05/11/1994	71,000,000.00	BANK OF BARODA	BANK OF BARODA BUILDING, PARLIAMENT STREET, NEW DELHI - 110001, INDIA	-
40	90232658	11/06/2001 *	71,000,000.00	THE ICICI LIMITED	163, BACKBAY RECLAMTION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
41	90239944	11/06/2001 *	71,000,000.00	ICICI LIMITED	163, BACKBAY RECLAMTION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
42	90233856	08/09/1992	50,000,000.00	AMERICAN EXPRESS BANK LIMITED	HAMILTON HOUSE, CONNAUGHT PLACE, NEW DELHI - 110001, INDIA	-
43	90233846	28/07/1992	40,000,000.00	ICICI LIMITED	163, BACKBAY RECLAMTION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
44	90233818	17/03/1992	19,000,000.00	PUNJAB NATIONAL BANK	ECE HOUSE; 28-A, K.G. MARG, NEW DELHI, DELHI, INDIA	-
45	90233808	14/02/1992	89,330,000.00	ICICI LIMITED	163, BACKBAY RECLAMTION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
46	90233749	28/07/1992 *	2,925,000.00	ORIENTAL INSURANCE COMPANY LIMITED	ORIENTAL HOUSE; A- 25/27; ASAF ALI ROAD, NEW DELHI - 110002, INDIA	-
47	90233729	20/01/1995 *	55,000,000.00	THE ICICI LIMITED	163, BACKBAY RECLAMTION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
48	90235475	31/01/1993 *	17,500,000.00	RISK CAPITAL AND TECHNOLOGY FINANCE CORPO. LIMITED	SCOPE COMPLEX; CORE V, LODHI ROAD, NEW DELHI - 110003, INDIA	-
49	90239605	21/01/1993 *	17,500,000.00	RISK CAPITAL AND TECHNOLOGY FINANCE CORPORATION LIMITED	SEOPE COMPLEX, CORE V; LODHI ROAD, NEW DELHI - 110003, INDIA	-
50	90233715	28/07/1992 *	19,000,000.00	ICICI LIMITED	163, BACKBAY RECLAMTION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
51	90233679	02/07/1997 *	420,000,000.00	THE ICICI LIMITED	163, BACKBAY RECLAMTION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
52	90237865	09/08/1994 *	60,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORP. OF INDIA LIMITED	163, BACKBAY RECLAMTION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
53	90367023	22/06/1989	4,360,100.00	INDUSTRIAL FINANCE CORP. OF INDIA	SANSAD MARG, NEW DELHI, DELHI, INDIA	-
54	90233549	17/02/2003 *	17,000,000.00	ALLAHABAD BANK	2 NETAJI SUBHASH ROAD, CALCUTTA - 700001, WEST BENGAL, INDIA	-
55	90237855	17/02/2003 *	17,000,000.00	ALLAHABAD BANK	2 NETAJI SUBHASH ROAD, CALCUTTA - 700001, WEST BENGAL, INDIA	-
56	90233542	28/09/1995 *	29,500,000.00	ALLAHABAD BANK	CHANDRAPUR, CHANDRAPUR, MAHARASHTRA, INDIA	-
57	90233506	07/04/2000 *	6,700,000.00	CORPORATION BANK	KARWAR NORTH KANARA, KANARA, WEST BENGAL, INDIA	-
58	90233459	27/10/1987	23,000,000.00	THE INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE, BOMBAY - 400005, MAHARASHTRA, INDIA	-
59	90233445	27/08/1990 *	60,000,000.00	UNIT URUST OF INDIA	SIR VITHALDAS THACKERSEY MARG, MUMBAI - 400020, MAHARASHTRA, INDIA	-
60	90233442	27/08/1990 *	30,000,000.00	GENERAL INSURANCE CORPORATION OF INDIA	INDUSTRIAL ASSURANCE BUILDING, CHURCHGATE, MUMBAI - 400020, MAHARASHTRA, INDIA	-
61	90239113	24/01/1989 *	6,000,000.00	PUNJAB NATIONAL BANK	BALLARPUR, BALLARPUR, MAHARASHTRA, INDIA	-
62	90233125	05/04/1990 *	1,000,000.00	UNION BANK OF INDIA	239, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA, INDIA	-
63	90238748	05/04/1990 *	14,000,000.00	BANK OF BARODA	CHANDRAPUR, CHANDRAPUR, MAHARASHTRA, INDIA	-
64	90238720	24/01/1989 *	28,750,000.00	ALLAHABAD BANK	AMBALA CANTT, AMBALA, HARYANA, INDIA	-
65	90238699	05/04/1990 *	29,500,000.00	ALLAHABAD BANK	CHANDRAPUR, CHANDRAPUR, MAHARASHTRA, INDIA	-
66	90232935	24/01/1969	17,000,000.00	ALLAHABAD BANK	2; NETAJI SUBHASH ROAD, CALCUTTA - 700001, WEST BENGAL, INDIA	-

* Date of charge modification

UNSECURED LOANS

Unsecured Loans	30.06.2012	30.06.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Non Convertible Debentures	2000.000	2500.000
SHORT TERM BORROWINGS
Working Capital Loan	3354.200	4256.400
Deposits	3.100	5.100
Total	5357.300	6761.500

COMPANY OVERVIEW

Subject a public limited company is engaged primarily in the business of manufacturing of writing and printing (WANDP) paper and paper products.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW

The brief momentum gained by the global economy after the crisis of 2008 came to an end from the second half of calendar year (CY) 2011. Growth rates reduced across the world — even in hitherto rapidly growing economies such as China and India. The Euro Zone, which was never out of trouble, faced one crisis after the other, led by Greece and followed by Spain, with only Germany showing economic strength that was, alas, not enough to bolster the economy of the region. Even US GDP growth, more resilient than other OECD majors, remained in the 1.8 per cent to 2.1 per cent band with high unemployment and insufficient demand pull. Simply put, CY2011 was worse than CY 2010.

World Bank estimates show that world’s real GDP growth dropped from 4.1 per cent in CY 2010 to 2.7 per cent in CY 2011. Worse, it is projected to be lower at 2.5 per cent in CY 2012. More importantly, many of the larger and faster growing developing countries, which were important drivers of global growth in the early post-crisis period — generating almost 50 per cent of the increase in global import demand and GDP growth — have started to slow down. Real GDP growth in the developing countries as a whole has fallen from 7.4 per cent in CY 2010 to 6.1 per cent in CY 2011; and is expected to fall another 80 basis points to 5.3 per cent in CY 2012. Unbelievable as it may seem, China’s GDP growth for CY 2012 is estimated at 7.8 per cent — lower than what it has been for decades. And India will be lucky to achieve 6 per cent.

In this gloomy growth outlook, the business environment for the pulp and paper industry remains uncertain. The uncertainty stems from a general slowdown in demand and varying macroeconomic trends across different regions of the world. Many producers have been affected by the impact of deteriorating macroeconomic conditions in CY2011. However, the severity of such impacts have varied by regions.

In Asia-Pacific, China continues to outpace the market with a projected sector growth rate in the 7 per cent - 8 per cent range for CY2012. Although China’s short-term outlook is positive, the Chinese industry is facing profitability challenges due to increasing raw material cost and producer fragmentation. Europe is facing an economic recession, where producers are addressing to declining demand and overcapacity for paper products. North America is anticipating modest growth in CY2012 but several of the sub-sectors, such as coated free-sheet, are challenged.

In this milieu, there are two clear trends emerging in the global pulp and paper industry.

· The Chinese paper industry, now the largest in the world, remains seriously nonintegrated. It buys pulp from the global market and produces paper. Given that pulp is sourced primarily by traders, this development has created a divide between the market pulp cycle and the paper cycle.

· The market cycles of pulp and paper are getting shorter — and success in the industry is becoming largely dependent on effectively forecasting the highs and lows of these cycles and taking proactive buying and selling decisions.

Demand side conditions were difficult in financial year (FY) 2012, i.e. July 2011 to June 2012. Overall, paper prices were lower compared to FY2011 and there was contraction in demand for writing and printing paper. In this challenging environment, there were severe pressures on growth and margins.

To BILT’s advantage, its core market in India and the overseas Malaysian subsidiary’s (Sabah Forest Industries Sdn.Bhd. or SFI) market are both growing, although the rate of growth has slowed down. Not only did subject focus on reading market developments and taking proactive decisions, but also continued with its emphasis on improving operational excellence, developing and leveraging its distribution network to maintain leadership in its core markets and creating product differentiation to gain some market edge and better contributions.

The positive for the year was that subject continued to penetrate markets and grow its sales volumes, which contributed to topline growth even as sales realisations fell in FY2012. On the negative side, input costs were higher relative to sales, especially so for fuel and energy. Consequently, while consolidated net sales increased by 5.6 per cent from Rs. 44980.000 Millions in FY2011 to Rs. 47480.000 Millions in FY2012, Profit after tax (PAT) after minority interest decreased by 42 per cent from Rs. 2130.000 Millions in FY2011 to Rs. 1230.000 Millions in FY2012.

PAPER BUSINESS — INDIA

MARKET DEVELOPMENTS

Subject caters primarily to the writing and printing paper segment. It also has a presence in speciality paper and the tissue business.

At the global level, demand for writing and printing paper de-grew by 1.6 per cent in CY2011 versus CY2010. For the first six months of CY2012, demand was also down by (–) 1.8 per cent compared to the same period of the previous calendar year. There are, however, significant differences in this overall growth across the regions. In the first six months of CY2012, North America and Europe registered declining demand — of (–) 7.2 per cent) and (–)5.3 per cent, respectively. In contrast, Japan showed a growth of 1.5 per cent. And the Asian economies, including India and China, grew by 2.4 per cent.

Subject with its core market in India and Malaysia through SFI, is better positioned in growing markets. Nevertheless, it will have to continuously deal with various challenges emerging from contraction of the global pie

as a whole.

For advanced countries, the advent of digital media has affected paper demand. Thankfully, in countries like India there is still massive under penetration of paper usage. Per capita consumption of paper in India remains woefully low at 22 lbs. in 2010, compared to 770 lbs. in the United States and 363 lbs. in the European Union. To put it differently, while India has 15 per cent of the world’s population, it consumes less than 2 per cent of the world’s paper.

The good news is that the gap is being bridged over time with economic growth, greater prosperity and increased spread of education. Indeed, India’s per capita consumption of paper has almost doubled in the last decade and this growth is expected to continue.

Moreover, India is the 15th largest paper consumer in the world, which amounted to some 11.49 million metric tonnes per annum (MTPA) in FY2012. It is also one of the fastest growing markets in the world, with estimates suggesting a market size increase to 20 million MTPA by 2020.

Indian writing and printing paper manufacturers have witnessed high capacity utilisation levels over the past four years due to significant demand growth. This has led to large capacity expansions in recent years. Though the growth in paper demand is likely to sustain in near future, it may not be adequate to absorb all new capacities; and the expectations of an excess supply in the short term has already increased competitive pressures within the industry.

In such an environment of competitive growth, subject has adopted a well calibrated plan to maintain its leadership position across various sub-segments of the writing and printing paper industry in India. It also strategically exports some of its output to leverage global opportunities, develop a market position in some countries, and balance-out the supply in India. In FY2012, it exported to 80 countries across the globe — with exports accounting for over 12 per cent of subject’s volumes produced in India. Apart from this, subject also increased its penetration in the Malaysian market through its subsidiary SFI.

The Company’s writing and printing paper business can be divided into five categories coated wood-free, uncoated wood-free, copier paper, business stationery and creamwove. SUBJECT is also into the tissue paper business.

COATED WOOD-FREE

Consumption of coated wood-free in India increased by 23 per cent to 567,000 MTPA in FY2012, with SUBJECT continuing to maintain and develop its leadership position in the country. The category includes blade coated, air knife and cast coated products. While the high technology blade coated products grew by 18 per cent, air knife grew by a staggering 183 per cent. The spurt in air knife demand was due to a specific change in packaging regulation by government, which prompted a move away from plastic laminated packaging to paper laminated packaging. SUBJECT developed a special product especially aimed at this application and sold close to 43,500 MT in FY2012.

At one level, the coated market can be segregated into one-side coated (C1S) and both-sides coated (C2S). At another level, it is divided between paper products and board products. Within blade coated products, the C2S paper market grew by 8 per cent to 282,150 MTPA and the C2S board market grew by 12 per cent to 104,000 MTPA in FY2012.

While coated wood-free is a value added market, it is getting increasingly commoditised. SUBJECT counters this by introducing new products, enhancing customer service through a multi‑format distribution network, and by continuously focusing on reducing costs through larger scale of operations and better efficiencies in production.

UNCOATED WOOD-FREE

During FY2012, the Indian uncoated market — comprising the Low Bright and Hi Bright segments — grew by 4 per cent to 1,130,000 MTPA. The market for uncoated wood-free in India is highly fragmented with a multitude of products and manufacturers. The segment is largely restricted to domestic players and price trends are set by domestic competition.

Subject continues to offer a wide range of products in the uncoated wood-free segment and remains the largest player in this space. While maintaining a commanding presence in each product category, it has laid greater importance on optimising its product mix for greater profitability. With this objective, the Company has been focusing on the higher value Hi Bright segment. Hi Bright, which accounts for around 61 per cent of the uncoated maplitho segment, grew by 8 per cent in FY2012, and subject maintained its leadership position in the category.

Most of subject’s major brands in this segment maintained their market shares. This includes Sunshine Super Printing Paper, which is used for offset printing and Three Aces Natural Shade Delux (T.A. NSD). A brand introduced by subject during 2010-11 called ‘BILT Magna Print’, has become the largest selling uncoated brand in India.

COPIER

Copier is a forward integration of the uncoated wood-free paper segment. This includes maplitho paper cut in sizes and having the characteristics best suited for desktop printing and copying.

This is a fast growing segment. The mill packed copier market in India grew by 12 per cent during FY2012 to 501,000 MTPA. The segment is characterised by intense competition with participation of all major players in the Indian paper industry. There are almost 40 brands at various price points. Subject has four major brands in the market — Copy Power, Image Copier, Ten on Ten and BILT Matrix — and has maintained its second spot in this highly competitive market. Moreover, with steady ramping up of production, the Company is well positioned to claim market leadership in this segment.

CREAMWOVE

This is a high volume, low value product segment. In volume terms, it is by far the largest segment in India. It is characterized by several producers, each with sub-optimal capacities, and a highly price sensitive market. This market is growing at around 1 per cent, and is estimated at 1.6 million MTPA in 2011-12. Subject has strategically maintained a minimal presence in this segment.

TISSUE AND HYGIENE

The business operations at BILT’s tissue division were fully migrated to Premier Tissues (India) Limited. During FY2012, various initiatives were undertaken at Premier Tissues that yielded results in terms of better revenues and profits. Consolidated domestic sales grew by 22 per cent over FY2011, which was significantly higher than the market growth. Operating profit of the consolidated business in FY2012 was about ten times that of FY2011. This was achieved through multiple interventions including price correction, improvements in the product mix and operational efficiency, and fixed cost reduction.

In an important strategic shift, exports were scaled down due to non-remunerative pricing and emphasis was laid on creating a larger bridgehead in the domestic market. The distribution networks in the North and Eastern regions have been revamped to meet long term growth objectives. Warehousing has been extended to Delhi, Kolkata and Ahmedabad to give the ‘Premier’ brand a truly pan-India presence.

It is worth noting that the subsidiary attained profitable growth despite several cost pressures. It had to absorb the increase in excise duty levied in the Union Budget 2011-12. Moreover, prices of all inputs like waste paper, packaging material and energy increased significantly. Devaluation of the rupee also led to higher cost.

OPERATIONS

As a consolidated entity, BILT’s paper manufacturing operation spans across five production units in India. These include Ballarpur (Maharashtra), Bhigwan (Maharashtra), Shree Gopal (Haryana), Sewa (Odisha) and Ashti (Maharashtra). The details of operational developments across the different Units are given below.

UNIT: BALLARPUR

During FY2012, Ballarpur produced 248,560 MT of paper. Capacity augmentation with the installation of a new state-of-the-art PM-7 paper machine — commissioned by Allimand of France — has come on stream. The new machine, with an installed capacity of 165,000 MTPA, produced 133,727 MT of paper in FY2012. This machine and the finishing section have enhanced quality, provided better packing and also reduced manpower use.

On the product development front, Ballarpur successfully manufactured new shades and products, including BILT Magna Print, Coating Base NCR, MG Poster for tea bags, copier grade paper for the stationery segment and wrapper paper. These have been tuned to meet customer needs in the domestic as well as export markets.

At the back-end, unbleached pulp production was 128,440 MTPA. Improved operational efficiencies resulted in better pulp quality with consistent brightness and increased pulp strength for better operations of paper machines. Pulp mill operations have been further optimised with change in raw material mix of wood and bamboo, which resulted in improved performance of paper machines and quality of paper produced. As a part of a fibre conservation programme, ash levels in paper have been increased

UNIT: BHIGWAN

During FY2012, the PM-1 line produced 140,483 MT of coated paper and coated boards. The new state-of-the-art PM-2 which started commercial production in March 2009 produced 138,832 MT of coated paper during 2011-12. Total production of the Unit was 279,315 MTPA, a decrease of 4,001 MTPA over FY2011. The reduction in production in terms of weight was due to increased production of lower grammage but high value added papers that yielded better financial returns.

The unit successfully developed several new products during the year. This included one side coated flexible packaging paper used for various pouches, high light fastness blue shade art cards used in playing card segment and paint shade cards.

Resource conservation continued to be a key focus area for Bhigwan. Process changes were undertaken, such as: fibre furnish optimisation, usage of BCTMP, filler increase in base paper resulting in higher ash content, optimisation of coating formulations and wet end chemicals helping in reduced usage of chemicals and fibre consumption. These operational improvements have helped offset the impact of rising input prices to a large extent. Use of paper grade BCTMP in furnish and increased ash level have not only reduced fibre consumption but also improved paper and board quality and reduced specific energy consumption.

During FY2012, the mill obtained ISO 50001-2011 energy management system certification. A number of energy conservation measures have resulted in reduction in specific energy consumption in spite of increased production of lower grammage but high value products. These efforts have been recognised at various national and international forums and the unit has received the following prestigious awards in FY2012.

ACHIEVEMENTS AND AWARDS:

· Earth Care Award for Green House Gases (GHG) Mitigation (Large Enterprises) by JSW and the Times of India.

· National Energy Conservation Award: First Prize in Pulp and Paper Sector, by Bureau of Energy Efficiency (Ministry of Power).

· 8th National Award for Excellence in Water Management: Received “Excellence Water Efficient Unit” Award for two categories i.e. within fence and beyond the fence by CII (Confederation of Indian Industry).

· Indian Manufacturing Excellence Gold Certificate from Frost and Sullivan and The Economic Times.

· Greentech Safety Gold Award from Greentech Foundation, New Delhi.

· Good Green Governance (G3) Award from Srushti Publications, New Delhi.

· Bhigwan was also shortlisted among the top five global manufacturing units by RISI Pulp AND Paper International for the ‘Best Efficiency Improvement’ of the Year Award 2011.

UNIT: SHREE GOPAL

Production at Shree Gopal increased from 79,694 MT of paper in FY2011 to 80,167 MT of paper in FY2012. The unit undertook various quality enhancing initiatives to improve customer servicing and satisfaction. Some of these include:

· Development of REB Moon Beam for digital printing, Chromo Paper , 90 GSM, Art Board, 350 GSM, Natural Shade Paper (High Bulk and Smooth finish) and High Bulk 1.80 Plus.

· Installed new process technology, such as alkaline size paper, polymeric surface sizing and introduction of the third generation oxidant technology (AMOX) for its biocide programme.

· Improved product quality for customer satisfaction, such as better stiffness and opaqueness in BCB and opacity of uncoated paper.

· Reduced bleaching chemical by introducing sulphuric acid at the pulp mill.

· Introduced anthraquinone and surfactant in pulping to reduce active alkali consumption.

· Installed an in-house developed new evaporator body in recovery.

In the area of environment protection, Shree Gopal has continuously ensured compliance with ‘CREP’ norms and achieved levels of treated effluent and boiler stacks emissions — well below the norms laid down by Haryana State Pollution Control Board. Overall, water consumption in the mills reduced by 2.5 per cent per MT of paper produced.

Specific energy consumption per ton of paper manufactured was reduced by 4 per cent. This was achieved by taking modifying program in PLC, optimisation of equipment, modification in the steam condensate system, replacing inefficient motors with energy efficient motors, and installing variable frequency drives.

As a part of the management commitment towards system implementation in FY2012, Shree Gopal continued to maintain the following certifications:

· Quality system ISO 9001-2008.

· ISO 14001-2004 certification.

· OSHAS 18001-2007 certification.

· FSC – COC certification.

UNIT: SEWA

During FY2012, Sewa produced 69,525 MT of paper, which was 2,265 MT more than the output in FY2011. Own pulp production also increased by 2,626 MT. The unit undertook various quality initiatives for new product development and to improve customer servicing and satisfaction. These resulted in:

· Achieving OTIF score consistently of 96.5 per cent during FY2012.

· Reducing customer complaints by 37 per cent in FY2012.

· Replacing 100 per cent talc by PCC for product quality improvement, improved opacity, brightness and bulk.

· Developing new brighter shade of Image Copier and TOT grade as per market demand.

Significant improvements were achieved in resource conservation including:

· Fibre loss reduction.

· Reduction on ETP load by improving chemical recovery efficiency.

· Reduction in relative consumption of utilities like steam, power and water.

· Optimisation of the raw material mix.

In terms of environment protection, Sewa has continuously ensured compliance with ‘CREP’ norms and achieved all the levels of treated effluent and boiler stack emissions as per the norms laid by Odisha State Pollution Control Board. During FY2012, the various initiatives taken to improve the environment include:

· Installation of AAQMS to monitor ambient air quality, ambient temperature and wind parameters.

· Commissioning of cooling tower to reduce influent temperature.

· Identifying potential users / farmers for the use of purged out lime mud for agricultural lands in consultation with District Industries Centre (DIC).

· MOU with brick manufacturers for free disposal of fly ash.

The unit achieved the following certification in FY2012:

· Re-certification of ISO 9001-2008.

· ISO 14001-2004 Certification.

· OHSAS 18001-2007 Certification.

· FSC-COC certification.

UNIT: ASHTI

In FY2012, Ashti produced 46,744 MT of paper, which was 6,555 MT lower than in FY2011. The lower production is due to higher downtime, adverse product mix and reduced market demand. Equally, the unit has improved product quality as well as reduced cost. In addition, there has been improved efficiency of the primary centricleaner pump to a higher capacity, which resulted in the improvement of product quality. These developments, coupled with other quality improvement initiatives have resulted in substantial reduction of customer complaints by 50 per cent in FY2012.

In the area of environment protection, the unit has successfully optimised the efficiency of electrostatic precipitator (ESP) to achieve suspended particulate matter at 50 mg/NM3, which is well below the statutory norms. It has also been able to reduce coal consumption by using bamboo dust as non-conventional fuel. Fibre losses from the plant have been further controlled to reduce the sludge generation and ETP load.

The unit catered to the office supplies and retail business by producing around 6,965 MT of paper for various brands like Ten on Ten, Matrix Premium Multi Purpose Paper (MMPP), BILT Copy Power Export, Matrix Premium Digital Paper (MPDP) and P3 segment. A testimony to the unit’s improvement in product quality is the success achieved in exporting paper to 30 countries across the globe, where the products are competing with international brands and meet high quality norms. The focus was to maximise the export order in sheet and reels by improving the quality.

As part of management commitment towards systems implementation, in FY2012, the unit obtained recertification of QMS ISO 9001:2008, EMS ISO 14001:2004 and ISO 18001:2007 of OHSAS. It has also obtained consent to operate from MPCB for three years up to December 2014.

PAPER BUSINESS – SFI,

MALAYSIA

In addition to the Indian market, subject directly operates in the Malaysian market through its subsidiary, SFI. While there is some level of integration in the operations of the two companies, from a market perspective, SFI manufactures and sells paper in Malaysia and its neighbouring countries.

The uncoated wood-free surface-sized market in Malaysia is estimated at around 235,000 MTPA, where SFI is still a small player that is gradually augmenting its market share. The uncoated wood-free un-surface sized market in Malaysia is estimated to be around 62,000 MTPA. Here, SFI held a major 57 per cent market share in FY2012.

During FY2012, paper production from the unit was 116,118 MT, which is about 12 per cent lower than FY2011. The lower paper production was mainly due to the project tiein shutdown taken for pulp mill up-gradation from 12 September 2011 to 5 November 2011. The shutdown was longer than what was originally planned due to project related obstacles. Out of the total paper production, 28,816 MTPA was for export orders. The bleached pulp production of 94,767 BD MTPA was 5 per cent lower than FY2011. Out of the total 105,297 AD MTPA of bleached pulp production 6,050 AD MTPA market pulp was manufactured for sale.

In operations, the following major initiatives were undertaken at SFI during FY2012:

· Energy savings by optimisation of refining energy in paper machine area to the tune of 15 kwh/metric ton. Replacement of rotary siphons at paper machines with energy efficient stationary siphons to save steam consumption by 0.05 metric tons/ton of paper.

· Savings in caustic consumption in caustic soda/chlorine plant (CSCP) by replacing caustic soda with milk of lime by producing calcium hypochlorite.

· Savings in power consumption at integrated chlorine dioxide plant by replacing one bank of new chlorate cell.

· Savings in power consumption through installation of variable frequency drives at key areas of the mill.

· Reduction in water consumption by 29 per cent per metric ton of paper produced.

· On the fibrous raw material front, a major achievement has been the introduction of mobile chipper in December 2011 to salvage small logs and wastes in the concession area.

Regarding its plantation activities, SFI has continued to increase its scale of operations by directly employing labour. This included an addition of some 600 workers during the FY2012 bringing the total to 850. In FY2012, around 5,000 hectares (ha) was planted, which is a 20 per cent increase over FY2011. In June 2012, planting exceeded 1,300 ha, a record for planting in a single month since SFI’s inception. The target for FY2013 is 10,000 ha. SFI is well on track to achieve this.

Construction of the new central nursery at the mill premises has now started and it is expected that it will be commissioned by the end of CY2012. This state-of-the-art facility will reduce biological risks, save costs and ensure that there will be sufficient quality plants for the current planting programme. It will also have facilities to produce planting material from cuttings and allow SFI to capture productivity gains available from clonal forestry plan similar to those obtained by subject’s extension programme in India.

SFI was awarded a compliance certificate by the Sabah Forestry Department for FY2011. In early 2012, it upgraded its Smart Wood Verified Legal Origin (VLO) certificate to the more demanding Verified Legal Compliance (VLC) certificate for its established plantations and its Natural Forest Management (NFM). SFI also retained its Forest Stewardship Council (FSC) Controlled Wood certification for its NFM Area. Regarding the status of the expansion in the pulp mill project, all installed equipment were successfully commissioned and commercial production commenced on 29 June 2012. Ramp up of the pulp mill production is in progress. While half of this mills capacity is meant for internal use at SFI, the other half is to be exported to India to feed some of subject’s paper manufacturing machines.

OFFICE SUPPLY AND STATIONERY

BUSINESS (OSSB)

The Indian office supplies and stationery market is estimated to be in the excess of Rs. 100000.000 Millions and is growing at 25 per cent per annum. Though it is still dominated by the unorganised sector, the organized players are rapidly increasing their footprints and adding new dimensions to this category. At its given size and growth rate, the office supplies and stationery market — driven by increased thrust in education, rising income levels, increasing urbanisation and favourable demographics — throws up a many opportunities for value addition by the organised players.

Subject continues to be an active player in the OSSB in India. The Company’s business has been growing at a CAGR of 25 per cent for the past five years, and registered annual revenue of Rs. 2750.000 Millions in FY2012. The growth drivers for BILT’s OSSB have been its robust range of differentiated products, portfolio enrichment, coverage expansion, efficient and responsive supply chain, and continuous brand building initiatives.

The OSSB product portfolio includes a wide range of paper products – Value Added Papers (VAP) and Copier as well as an array of stationery items for schools and offices. Brands in the VAP category are speciality paper products, which have carved out a niche market positioning. In the VAP category, Royal Executive Bond (REB) and Matrix Multipurpose Paper continued to register strong growth during the year.

In the Copier category, Subject’s brands such as Copy Power, Image Copier and Ten on Ten recorded impressive growth with strong market presence.

OSSB’s stationery business continues to make significant strides in strengthening its portfolio through extensions and new launches in the Executive and Student Stationery categories. The business rolls out its product offerings under the Matrix and Ten on Ten brands across different geographies while maintaining focus on addressing various consumer benefits.

In the Executive stationery segment, the market standing of the Matrix brand has significantly improved through consumerled product differentiation, focus on quality, strong trade marketing and distribution network and enhanced brand building efforts. Use of digital, transit and print media and clutter breaking advertisements helped improving the brand salience.

In the student stationery segment, portfolio enrichment has been driven through the launch of Ten on Ten and Matrix Junior in new and attractive cover designs. Their innovative, first-to-market designs, based on character randing of popular children characters like Barbie, Ben10, Hot wheels, Disney Princess, Mickey Mouse, and Spiderman, has created excitement among school-going children and has significantly enhanced the consumer franchise of the brands.

Subject’s OSSB has been awarded the ‘Product of the Year’ for stationery product categories for the last four years. The award is given for excellence in product innovation and is based on a consumer survey of over 25,000 respondents, across India.

The business continues to invest in distribution infrastructure to support large scale distribution as well as to improve reach and availability. The products are marketed across India through a well-established network for distribution through 350 distributors, reaching in excess of 40,000 retail outlets. OSSB also strengthened its export operations and supplied to developed and developing market, even becoming a supplier to global retailers, like Coles and Office Depot.

During FY2012, the business witnessed inflationary pressures in input costs. These pressures were largely mitigated through a combination of improvements in product and process efficiencies, smart sourcing and supply chain initiatives.

OSSB’s continuous transition to higher value-added products, its obsession with quality, backed by strong marketing and distribution network have helped develop a robust business with an outlook for further growth and scale.

RETAIL: P3

Subject made its foray in organized retail business around three years ago through P3, which stands for Paper, Print and Pen. Though relatively small in size, it is a unique and successful combination of world class stationery merchandise, convenience of buying and price integrity. It operates in both the Business to Business (B2B) and the Business to Consumer (B2C) space. In fact, the B2B arm has a product portfolio in excess of 5,000 SKUs encapsulating categories like Copier, Office stationery, IT and Technology products, gifting and print solutions.

Today P3 positions itself as a preferred choice of professionals and provides an array of office supplies and consumer merchandise to over 600 companies across sectors like pharmaceuticals, power, banking, automobile, FMCG, consumer durables, aviation and education.

Subject’s proficiency in paper is mirrored in its print solutions business with a robust customer base of over 100 companies providing a wide spectrum of specialised and customised printing solutions.

Over the last year, P3 has consolidated its retail stores and has rapidly expanded its B2B footprints, thereby maintaining a healthy growth trajectory. Revenue for FY2012 was around Rs. 750.000 Millions.

With its growing understanding of consumer insights, relevant and robust product portfolio, strong customer network and responsive supply chain, the business is well poised to actively participate in the emerging growth opportunities in B2B segment.

PULP BUSINESS

While pulp produced in most of the units is internally used in the manufacturing of paper, the Company’s Kamalapuram Unit is the only one that caters to outside customers. It primarily produces and supplies rayon grade pulp to the viscose fibre industry. It also manufactures some paper grade pulp for balancing its production. FY2012 was one of the best performance years for revenues and profits of this business.

UNIT: KAMALAPURAM

During FY2012, the unit produced 88,719 MT of rayon grade pulp — an increase of 724 MT over the previous year. It has improved and sustained high level of quality norms set by its customers by improving and modifying the processes at every level. In the process, it has successfully fulfilled the pulp demand of new customers such as Kesoram Rayon and Century Rayon against their requirement in different quality and sizes.

There were several system improvement and plant sustainability projects to improve overall efficiency of the plant. These include modification of evaporator bodies (mild steel tubes with stainless steel tubes), thereby increasing throughput and steam economy; updating and fine tuning of DD washer operations resulting in increase of recovery efficiency from 92.6 per cent to 94.04 per cent; de-bottlenecking of the pulp cleaning system; optimisation of chemical usage through various process improvements such as commissioning of a new RCC C/D Tower; and rehabilitation / strengthening of the plant structures under a programme called Project Savera.

Environmental issues have always been a focus area of the mill. As a major initiative, the cooking operation was changed by re-using pre-hydrolysis liquor — which was earlier going to ETP — in order to improve the quality of the final effluent.

Resource conservation continued to be a key focus area. Significant improvement was made in recycling waste/ treated water in the process with the help of system modification and technological improvements, which has reduced specific water consumption by 3 per cent per MT of pulp. There was also a savings of 18 kwh/MT of pulp saved in power consumption through energy conservation jobs like stoppage of warm water pumps and installation of variable frequency drives.

In addition, Kamalapuram has taken several measures for system improvement enhance overall performance. These include:

· Re-commissioning of the old 5.6 MW turbine generator with in-house expertise thereby reducing the dependence on grid power.

· New electrolyser cell assembly was installed in place of old one, which increased the production rate and also resulted in lower power consumption.

· Implementation of two blow tank operation with individual blow lines to reduce steam consumption.

· Old clarifier was renovated and converted as tertiary clarifier which helped in improving final effluent discharge norms.

· ETP upgraded by installing new systems like on-line ambient monitoring station, stack monitoring, and treated effluent buffer guard pond.

· Improved security vigilance in the mills and the colony.

The unit is IMS certified for Quality, Environment and Safety (ISO:9001, ISO:14001 and ISO:18001) and has taken initiative to achieve EnMS Certification (ISO- 50001).

CAPACITY EXPANSION SFI

The expansion for additional production of 120,000 ADT per annum of pulp has been completed successfully and the capacity is under stabilisation and ramp-up. The first consignment of 7,000 tonnes of pulp was dispatched from Malaysia in July 2012 and regular shipments are expected to commence soon. The respective suppliers of individual sections of the plant are expected to establish the guaranteed throughput and related design parameters by August 2012.

UNIT: BALLARPUR

The pulp mill modernisation project at Ballarpur is in an advanced stage of construction. Most of the major shipments have reached the site or have been erected. Section-wise pre-commissioning trials of the pulp mill modernisation is expected to progressively commence from December 2012.

INFORMATION TECHNOLOGY (IT)

Subject completed a major upgrade of its connectivity between its head office, its data centre, all manufacturing units and regional sales offices. The network bandwidth between all these locations was doubled to ensure seamless and secure traffic of organisational data. The Company also completed the upgrade of base infrastructure, as part of its exercise of phasing out old equipment and technology that had begun in the last financial year. This included tripling storage area network capacity, replacing network switches and implementation of security processes and gateways in the quest to keep the operations secure, scalable, modern and cost effective.

The objective of more automation, improved employee productivity and efficiency as well as requisite compliance was achieved by rolling out new applications and dashboards in the areas of Human Resource Management, Export Management, Imports, Finance Management and Sales/Marketing in FY2012.

FINANCIAL REVIEW

Table 1 gives the abridged profit and loss for subject, as a consolidated entity.

The salient features of the financial performance are:

· Net sales increased by 5.6 per cent to Rs. 47478.000 Millions in FY2012.

· With cost and pricing pressures, operating margins (PBDIT/Net sales) reduced from 19.5 per cent in FY2011 to 16.9 per cent in FY2012. Consequently, Profit before interest, depreciation and tax (PBDIT) reduced to Rs. 8009.000 Millions in FY2012.

· Profit after tax (PAT) after minority interest and share in associate companies decreased by 42 per cent to Rs. 1231.000 Millions in FY2012.

AUDITED FINANCIAL RESULTS FOR THE QUARTER / YEAR ENDED 30TH JUNE 2013

(Rs. in Millions)

		Standalone
Sl. No.	Particulars	3 Months Ended	Preceding 3 Months Ended	Year to date for current period ended
		30.06.13	31.03.13	30.06.13
		(Audited)	(Unaudited)	(Audited)
1	Income from operations
	(a) Net sales/income from operations (Net of excise duty)	2374.300	2667.500	9811.400
	(b) Other Operating Income	25.800	22.800	71.900
	Total income from operations (net)	2400.100	2690.300	9883.300
2	Expenses
	(a) Cost of Material Consumed	629.800	688.800	2811.500
	(b) Purchases of stock in trade	240.600	345.200	1039.300
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(55.300)	59.400	(159.800)
	(d) Employee benefits expense	347.700	302.600	979.900
	(e) Depreciation and amortisation expense	198.700	200.200	808.900
	(f) Other Expenditure
	Power and Fuel	430.700	471.400	2050.300
	Store and Spares	200.700	202.600	1040.100
	Other Expenditure	242.600	219.500	509.800
	Total expenses	2235.500	2489.700	9080.000
3	Profit/(Loss) from operations before other income, finance costs and exceptional items (1-2)	164.600	200.600	803.300

(Rs. in Millions)

Sl.	Particulars	3 Months Ended	3 Months Ended	Year to date for current period ended
		30.06.13 (Audited)	31.03.13 (Unaudited)	30.06.13 (Audited)
4	Other income	--	--	--
5	Profit/(Loss) from ordinary activities before finance costs and exceptional items (3 + 4)	164.600	200.600	803.300
6	Finance cost	123.000	120.100	426.400
7	Profit/(Loss) from ordinary activities after finance costs but before exceptional items (5 - 6)	41.600	80.500	376.900
8	Exceptional items	--	--	--
9	Profit / (Loss) from ordinary activities before tax (7 + 8)	41.600	80.500	376.900
10	Tax expense (Net of MAT entitlement Credit )	(22.600)	26.200	45.000
11	Net Profit / (Loss) from ordinary activities after tax (9 - 10)	64.200	54.300	331.900

(Rs. in Millions)

Sl.	Particulars	3 Months Ended	3 Months Ended	Year to date for current period ended
		30.06.13	31.03.13	30.06.13
		(Unaudited)	(Unaudited)	(Audited)
12	Extraordinary items (net of tax expense)	--	--	--
13	Net Profit / (Loss) for the period (11 - 12)	64.200	54.300	331.900
14 15	Share of profit / (loss) of associates Minority interest	--	--	--
16	Net Profit / (Loss) after taxes, minority interest and share of profit / (loss) of associates (13+14-15)	64.200	54.300	331.900
17 18	Debt service coverage ratio Interest service coverage ratio			1.09 3.78
19 20	Paid up Equity Share Capital (Face Value of Rs 2/- per share) Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year			13112 146614
21	Earnings per share
	(a) Basic (b) Diluted	0.10 0.10	0.08 0.08	0.51 0.51

(Rs. in Millions)

		Standalone
Sl.	Particulars	3 Months Ended	Preceding 3 Months Ended	Year to date for current period ended
		30.06.13	31.03.13	30.06.13
		(Audited)	(Unaudited)	(Audited)
	PART II
A	PARTICULARS OF SHAREHOLDING (the details
	relate only to shares of the Company)
21	Public Shareholding :
	- Number of Shares	331513172	331563154	331513172
	- Percentage of Shareholding	50.57%	50.58%	50.57%
23	Promoter and Promoter group Shareholding
	a)Pledged /encumbered
	- Number of Equity Shares of Rs. 2/-each	6500000	15700000	6500000
	- Percentage of Shareholding (As a percentage of total shareholding of promoter and promoter group)	2.01%	4.85%	2.01%
	(As a percentage of total share capital of the company)	0.99%	2.40%	0.99%
	b).Non-encumbered
	- Number of Equity Shares of Rs. 2/-each	317510667	308260685	317510667
	- Percentage of Shareholding
	(As a percentage of total shareholding of promoter and promoter group)	97.99%	95.15%	97.99%
	(As a percentage of total share capital of the company)	48.44%	47.03%	48.44%

Particulars B. INVESTOR COMPLAINTS [Nos.]
Pending at the beginning of the quarter	-
Received during the quarter	4
Disposed of during the quarter	4
Remaining unresolved at the end of the	-
quarter

QUARTERLY REPORTING ON SEGMENT WISE REVENUES, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT

(Rs. in Millions)

		Standalone
Sl.	Particulars	3 Months Ended	Preceding 3 Months Ended	Year to date for current period ended
		30.06.13	31.03.13	30.06.13
		(Audited)	(Unaudited)	(Audited)
1	Segment Revenues
	(a) Paper	988.600	1007.900	3864.600
	(b) Paper Products AND Office Supplies	506.000	524.500	1836.900
	(c)Pulp including Rayon Grade	879.700	1135.100	4109.900
	(d) Unallocated	--	--	---
	Total	2374.300	2667.500	9811.400
	Less: Inter Segment Revenue	--	--	--
	Net Sales/ Income from operation	2374.300	2667.500	9811.400
2	Segment Results ((Profit)(+)/ Loss (-) before tax and interest)
	(a) Paper	190.100	133.700	450.700
	(b) Paper Products AND Office Supplies	20.200	21.000	73.600
	(c) Rayon Grade Pulp	(33.000)	58.400	334.500
	(d) Unallocated	--	--	--
	Total	177.400	213.100	858.800
	Less: i) Interest	123.000	120.100	426.400
	ii) Other un-allocable expenditure net of un-allocable income	12.800	12.500	55.500
	Total Profit Before Tax	41.600	80.500	376.900
3	Capital Employed
	(Segment Assets - Segment Liabilities)
	(Based on reasonable estimates )
	(a) Paper	10715.900	13067.700	10715.900
	(b) Paper Products AND Office Supplies	1256.600	914.600	1256.600
	(c) Rayon Grade Pulp	6031.400	4530.900	6031.400
	(d) Unallocated	7666.000	7284.900	7666.000
	Total	25669.900	25798.100	25669.900

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rs. in Millions)

		Standalone
	Particulars	As at 30.06.13
A	EQUITY AND LIABILTIES
1	Shareholders’ funds
(a)	Share Capital	1311.200
(b)	Subordinated Perpetual Capital Securities	--
(c)	Reserves and surplus	14661.400
	Sub-total-Shareholders funds	15972.600
2	Share application money pending allotment
3	Minority Interest
4	Non Current liabilities
(a)	Long -Term Borrowings	3179.200
(b)	Deferred Tax Liabilities (Net)	1035.200
(c)	Other long-term liabilities	36.700
(d)	Long -Term Provisions	338.400
	Sub-total-Non-Current Liabilities	4589.500
5	Current liabilities
(a)	Short -Term Borrowings	4021.500
(b)	Trade Payables	1351.700
(c)	Other Current liabilities	2326.500
(d)	Short -Term Provisions	294.900
	Sub-total-Current Liabilities	7994.600
	TOTAL-EQUITY AND LIABILITIES	28556.700
B	ASSETS
1	Non Current Assets
(a)	Fixed Assets	13522.700
(b)	Goodwill on consolidation	--
(c)	Non-Current Investments	8137.800
(d)	Deferred Tax Assets (Net)	--
(e)	Long-term Loans and Advances	427.400
(f)	Other Non-Current Assets	--
	Sub-total-Non Current Assets	22087.900
2	Current Assets
(a)	Current Investments
(b)	Inventories	2615.100
(c)	Trade Receivables	2129.600
(d)	Cash and Cash Equivalents	177.800
(e)	Short-term Loans and Advances	1544.500
(f)	Other Current Assets	1.800
	Sub-total-Current Assets	6468.800
	TOTAL-ASSETS	28556.700

Notes:

1. Provision for taxation is net of MAT entitlement credit of the Company’s step down subsidiary Bilt Graphic Paper Products limited (BGPPL) amounting to Rs 81.300 Millions and Rs.321.800 Millions for the current quarter and for the year ended June’13 respectively. (Corresponding quarter/Year ended June’12- Rs.9.600 Millions and Rs.285.200 Millions respectively). The provision for consolidated deferred tax liability for the quarter/ year ended is net of Rs. 267.900 Millions/ Rs.407.500 Millions respectively includes deferred tax asset recognised by the Company at its step down subsidiary SFI. (Corresponding quarter Rs.68.000 Millions/ Previous Year Rs.252.500 Millions). Also the Company has recognised deferred tax assets amounting to Rs. 29.500 Millions during the quarter (Corresponding quarter Nil).

2. On 24th August, 2012, the Members of the Company and BGPPL had approved transfer by way of slump exchange on a going concern with effect from 1st July, 2012 the business undertakings of the Company situated at Units Sewa and Ashti engaged in the business of manufacture of Copier Paper with business undertaking of BGPPL situated at Unit Kamalapuram engaged in the business of manufacture of Rayon Grade Pulp. Accordingly, the standalone results of Ballarpur Industries Limited are not comparable with the results for quarter/year ended 30th June, 2012. The shareholding of the Company in BGPPL remains unchanged and there has been no impact on the consolidated financials of the Company, Post Exchange of aforesaid business undertakings.

3. The Pulp mill modernisation project at Unit Ballarpur forming part of BGPPL has been completed and commenced trial runs from July’13 onwards.

4. The Board has recommended Dividend @ 15 % i.e. Rs. 0.30 per Share.

5. These results have been reviewed by the Audit Committee , approved by Board of Directors in its meeting held on 29th August,2013 and have been audited by the Statutory Auditors of the company.

6. Previous year figures have been regrouped /rearranged wherever necessary.

CONTINGENT LIABILITIES:

Particulars	30.06.2012	30.06.2011
	(Rs. in Millions)
(a) Claims against the company not acknowledged as debts	1021.000	1018.100
(b) Guarantees	137.900	121.800
Total	1158.900	1139.900

FIXED ASSETS:

Tangible Assets

· Freehold land

· Leasehold land

· Buildings

· Plant and equipments

· Furniture and fixtures

· Vehicles

· Office equipment

· Railway sidings, Trolley lines

Intangible assets

· Computer Software

CMT REPORT (Corruption, Money Laundering AND Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.67
UK Pound	1	Rs. 100.71
Euro	1	Rs. 84.72

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BVA

SCORE AND RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		53

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial AND operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.